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Last Updated : Sep 11, 2019 10:27 AM IST | Source: Moneycontrol.com

Wipro tumbles 2% after CLSA maintains sell, blames poor execution

CLSA expects Wipro to remain at the bottom of its peer growth range in FY21.

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Shares of Wipro fell 1.7 percent intraday on September 11 after global brokerage firm CLSA retained sell call on the stock amid poor execution.

The research house has a target price at Rs 220 per share, implying 14 percent potential downside.

The stock lost more than 15 percent in last three months. It was quoting at Rs 251.25, down Rs 4.35, or 1.70 percent on the BSE at 0958 hours IST.

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"Wipro showed poor execution despite its early focus and investments in digital and large acquisitions," CLSA said, adding the IT company made considerable acquisitions to beef up its presence in DX projects.

The brokerage further said while digital growth is comparable, overall growth rates lag peers, and weak Q2 guidance highlights company's persistent execution challenges.

CLSA expects company to remain at the bottom of its peer growth range in FY21.

Wipro has reported 3.86 percent sequential fall in first quarter (FY20) consolidated profit and 2.4 percent decline in revenue from operations.

IT services revenue in dollar terms degrew by 1.76 percent sequentially to $2,038.8 million in Q1FY20, which was below a CNBC-TV18 poll estimates of $2,067.7 million.

On guidance front, the IT company expects IT services dollar revenue in the range of $2,039-2,080 million for July-September quarter, a growth of 0-2 percent over June quarter which was slightly below street estimates.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on Sep 11, 2019 10:27 am
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